another one, yesterday's low at your stock. >> i like the keurig. i think it is a good seller when we see numbers from christmas. and i'm not worried about starbucks. >> a quick comment on the market. >> please. >> the vix is as cheap as it's been in years. >> 5 1/2 year low. >> it is your own fault if you don't seek portfolio protection if you have concerns about the market. 3m, my final trade. i like pete's quality. >> i think can you stick with apple here. i think the stock is acting fine. but my final trade is ebay. i think the stock goes a lot higher. >> dow is up 55. s&p up 3. more earnings after the bell today. big bank earnings next week. catch more "fast money" tonight. follow me on twiter. "power lunch" is all over the markets for the next hour and that show is going to begin with

bill. i mean, with tyler. and sue. right now. >> "halftime" is over. the second half of the trading day starts now. >> bill griffith often imitated, never duplicated. i'm tyler mathis. it is an hour of power filled with questions and answers. here are three for you right now. first, will white house chief of staff jack lou be the next second? lot of people saying yes. well get you the answer. second, you can bank, or can you, on solid earns on the solid sector? we will have the answers on the biggest of the banks and how bad is it for boeing? how much damage will the recent run of problems for the so-called dream liner due to boeing and company shares. three questions this hour. three answers. sue? full of answers, live as always at nyse. >> i hope so, ty.

we will start with a question. will jacob be the next nominee? john harwood confirming he will be nominated to replace outgoing secretary of treasury tim geithner. but can he get through the senate? that the question. john is here in new york with perspective on that. what do you think, john? >> yes, he can. he is liked across the political spectrum. he is an effective liberal serving tip o'neill in the past. but we know that second term cabinet are beginning to fall into place. we have had the national security members of the team named in the last few days but now jack lew will be named, we expect tomorrow, to replace tim geithner who has been wanting to leave for some time. here is what president obama gets, someone with vast experience in handling capitol hill and dealing with budget negotiations. he's been a part of almost lever r every big budget negotiation the last couple of decades.

secondly, someone who will remain part of his inner circle and genial personality. what he doesn't get is the experience tim geithner brought, years of financial regulation. tim geithner headed the bank of new york. he doesn't have the ties to wall street that a wall street executive might provide. jack lew did work at citigroup briefly, but he doesn't have deep ties there. this is a government person, but the president decided that that's what he needs in a time when he will have a pro trektive fight with republicans over spending cuts, over the budget, over the debt ceiling. this is where jack lew's experience and knowledge can come in and i would expect, sue, and tyler, that he would be confirmed pretty easily. even though he has tough questioning at confirmation. >> let's bring in steve liesman.

he is low drama, low confrontation. he doesn't have wall street regulatory. who is lew? >> i think the first theng i will do is begin the series of puns beginning with jack lew's name. let me say more about jack lew, we call this one, you don't know jack. >> of course you do. >> this is a financial education. beginning with harvard and georgetown. but that never disqualified anybody. tip o'neill 93 and '94, special to president clinton. and that's what john harwood was talking about. incredible expertise with the budget. moving on in 2006, new york university as executive advice president. then a stint at citigroup. first at global wealth management and next in a controversy by the way that comes up with a large bonus he got while citigroup was getting tart money. finally reenter the

administration. i'm sure the administration will make a cot of, as secretary in charge of of resource management. and second stint of omb. then white house chief of staff to the present. let's look at positive. some private sector banking experience. that ends up being a negative. close to the president, you have treasury secretaries with more or less connections to the white house. . finally ton negatives, is this the guy you want in office during financial crisis like you had with geithner with his experience at the new york fed? not really viewed as a banker. doesn't know finance man sters. that can be cured. of course republican opposition, tyler, i will tell you, there was a story in bob woodward's book in change boehner said, don't give me jack, lew. he said no, 999,000 out of a million. of course john boehner's opinion doesn't matter. he is at the house. has to be confirmed by senate.

i believe it was unanimous or thereabouts. >> i don't mean to betray the house secrets here. do you know, lew, at all personally? >> i've ml met lew a couple tims pip know him as a guy whose been in the saddle during that, not afraid to use government -- >> where is geithner likely to end up? any ideas? dartmouth? >> a lot of talk about that. i don't see him going to take a big job at a bank though certainly after all of his years of public service you would think there is a massive temptation for him to cash in. >> let's talk about what is really important here np jack lew's signature. >> oh, yeah. >> lets dee some handwriting analysis there. see it on the dollar. >> this is the worst qualification. robert ruben. not bad. he could be treasurer secretary.

>> declaration of independence. >> here wz oh, not bad. >> here is what we know to be jack lew's signature here. >> no w no. that is one beautiful -- >> let me give you a context here. geithner, paulson. then there's in guy who -- somebody compared it to a shrinky. >> i would have guessed that is elmo's signature. >> could he be secretary of treasurer with that signature? >> we shall see. they may raise that during confirmation hearings since we did. >> thank you very much. >> management big banks will be one of jack lew's biggest tasks and today morgan stapply is slashing 1600 jobs. half from the united states. other half obviously not from the united states.

international operations. cuts are expected in the next few weeks. this as investors ready for big bank earnings. wells cargo kicking it off on friday. good 2012 for financials. but what will earnings picture say? kanla getting ahead of the numberes. kayla? >> despite big bank rally, since the beginning of the fourth quarter, fear that underlying earnings could take the wind from stock sales. most big u.s. banks will take a hit from this week's mortgage settlements. bank of america with steepest charges with settlements totaling $3.8 billion. wells fargo coming off its bottom line from occ settlement. citi is 305 million and j.p. morgan does not yet know. there are margins under pressure for several quarters at this point. capital markets activity slowed in fourth quart wesh not as much

as q 4. there are transactions with the uncertaintive the fiscal cliff. according to dee logical global, bank revenues down 3% compared to 2011. loan underwriting down. only up is dead capital markets for bond underwriting jumping 30% because of continued low interest rates. in fact, debt capital rights with the lowest share in the last 15 years. sue, this is the potential surprise of course when you manage expectations that low there is whab do you know, potential for the surprise upside. >> i'm sure a lot of people are hoping for that. thank you, kayla. mike mayo call are for a bank break up and is calling for investors, individual investors to take a bigger role. bob pisani is on the case. >> unfortunately he couldn't be

here tonight. but had a gold think piece. mike penned a piece to client which he called for breaking up some of the largest banks out there. take a look at this. mayo says banks underperformed for years and that revenue groaning is back and likely to be the worst since the great depression. he says banks needs to reinvent themselves to protect the bottom line given what we've got a week top line. he approves of recent signs that shareholder activism is increasing. shareholders should down size and demerge to release trapped value. increasing stock prices by one-third to one-half for banks like citigroup and morgan stanley. >> the banks should start by spinning off as sets. it gets very specific here. he says bank of america should spin off brokerage business. he says j.p. morgan should spin off global asset management business and citigroup should spin off latin american business. and urges cutting back office

expenses and just getting out of unprofitable businesses. et sites ups shutting down its area. >> leaving the agency after four years in a high pro feel tenure as wall street's top cop at sec. sec saying in a statement that under khuzami, the division charged more than 150 individuals and entities with wrongdoing including 65 ceos, cfos and other senior corporate officials. they say that financial services -- financial crisis related cases resulted in 2.68 billion in financial relief for harmed investors and 36 investors are barreder issing serve /* -- guys looks like the

sec for now is looking at internal candidates to replace khuzami but let the speculation begin on who successors will be. sue? >> eamon javers. thank you. now breaking news on herbalife. >> this saga keeps going on and going on. this morning we told you about dan lobe of third point partners took 8.2%. he filed but took 8.2% stake in herbalife. he had a tremendous year. what is interesting, is he and ackman, the stock short to the equivalent of 25% of the companies shares are allegedly friends. today bill ackman came out with a statement with the stock saying our goal was to shine a spotlight on the company so that the world better understands the facts about herbalife. the outcome of this investment is not about purchasing square

or anyone else longer short the stock. to the extent another investor, long or short, brings additional light to the situation, we welcome them. he has facts about herbalife. to send them there and learn more about his presentation. his three-hour presentation. by the way, remember rb herbalife will present in new york two analysts. >> thank you so much. the director of floor operationes with o'neill security, you want it weigh in on herbalife or overall market. >> no. >> just giving you the opportunity. >> let's stay away from herbalife. the market look ford a reason to want it rally after three or four days of pressure. so i think alcoa gave it that. but they talked about what they saw in china as being very positive. so there for, the market just needed that. that could change tomorrow or the day after when someone says

china is weakening so we are stuck in this very specific train -- >> does it give more creedance to the china story because of alcoa's space and raw material space? >> i think it does. when young brands say they missed a number because chinese weren't buying kentucky fried chicken, you take that with a grain of salt. but when you talk about aluminum and alcoa, what is the chinese looking like. but as we go through the earnings season, you will see that story more and more and investors will pay attention to it. >> thank you so much. see you later. breaking news. ten-year notes up for auction. 30 years tomorrow. ricky, how did we do? >> 9-year 10-month notes. the grade is c minus. here is why, and i was kind. wi has been at 185 1/2, offered at 185.

and surveys thought it would price in the 184 camp. they are even more disappointed. but i think c mine us is the right grade. 3.8. been to cover. 10 auction average np is 283. 10e 10 auction average. on direct, 21% this one. 14.8. what was it last month? an historic 42.7. that dropped dramatically. so all in all dealers took 56.7% of the auction. they have a pocket full of ten-years. sue, back to you. >> thank you very much, rick. rick santelli in chicago. a terrifying compute this morning for fairy riders working in lower manhattan. right near where i am here on wall street. two blocks from where we are. at least 50 people have been hurt when the c street wall street ferry had a hard docking,

it had hard term stopping at the dock. the ferry was in route from new jersey. the ntsb is investigating and ty, there is a very personal situation because one of the gentlemen wlos been critically injured in that ferry accident is johnny. we know him here as johnny utah. he works for barclays here at the new york stock exchange. we understand he is in surgery and we wish him and his family all the very best. we will be thinking about him and praying for him. very somber mood down here. a number of people who work on this floor, ty, were hurt. >> i believe including one of the other freedom rider of that ferry is matt who joins us from time to time. >> yes. >> i don't know if matt is there today. but some 50 people injured. at least two in the news reports, including individuals you just mentioned. >> johnny utah. >> we wish them well as they go

through recovery of course. up next, boeing and push back. phil la la bow has more. phil? >> he is a hundred percent comfortable the dream liner is safe to fly. we will have more when "power lunch" returns. [ male announcer ] this is joe woods' first day of work. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. ♪

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take a look at shares of boeing. they are up by about 3% move. moving up after selling off monday and tuesday. coming after several problems with the company's dream liner aircraft. but boeing doing a little bit of push back today aep phil has the story. hi, phil. >> hi, tyler. boeing just wrapped up a conference call with reporters updating where they believe the 787 is in terms of reliability. two pieces of news. the first one being that in terms of reliability after 15 airplanes in service, the dream plane is where the 787 was. rebuilt of taking off and landing on time. other piece of news has to do the lithium ion batteries on board. here is what the chief of safety has it say about use of these batteries. >> we have over a million hours of safe operation of these battery cell in flight.

so i continue to be very confident in the battery technology and system implementation of that technology. >> remember, boeing traced the source of the fire on monday to a lithium ion battery. this is a picture of ntsb as they are investigating. the batteries provided bay japanese firm. they are also assisting in the investigation. i don't think everybody fully understands what we are talking about the complexity of the supply chain when it comes to manufacturing the dream liner. there are kparparts and compone worldwide and they come either in the puj tpuget sound area or in north carolina. a note this morning from sg collin and company saying the jal 787 flight was aborted yesterday because of 40-gallon fuel leak ultimately took off

four hours later without incident. this suggested the leak was from faulty maintenance and nothing else. as a result, that note, there are other bullish comments on wall street. what we see from boeing shares today a nice snap back up roughly 3%. down just 1.6% since monday. tyler, this story, again, a lot of headline risk in there. and sue what we hear from beauing is they are comfortable with what they see from the dream liner, still investigating the fire but over all with reliability of the plane at this stage of manufacturing. sue? >> all right. phil lebeau, thank you so much. you saw the chart that phil put up. what is ahead for the stock in rick is reiterating his buy rating on boeing. thanks for joining us. why are you repeating the bye rating and what's the target? >> i think the stock is trending

up higher. boeing has taken a while to get the 787 out in customer hands but in flight or on the ground, issues, nobody is canceling orders and the airplanes are going back into very ready service. i think if there was a safety problem, the ntsb would have acted by now and secondly the airline would ground the planes. boeing has a huge backlog and booked in 2012 twice the number of airplanes that they delivered to customers. that the highest number of deliveries since 1999. and they are ramping up production and earnings will go higher the next several years. >> all right. what is your target? i understand you had a $90 price target on it. is that correct, or not? >> one-year price target is $090

but that could just be a starting point. >> just when you think things couldn't get worse for congress's approval rating, it does. wait until you see who is even with congress on that measure, next. coming up, start-ups givis their 60-second pitch. >> i'm ceo of global response. >> we give you insight into the fast-paced world of venture capital. >> how big are your margins. >> how big do have you it scale to make this business profitable. >> do they have what it takes? >> are you in or are you out? >> stay tuned to find out. [ male announcer ] at northern trust, we understand

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just two pills for all day pain relief. try aleve d for strong, all day long sinus and headache relief. the wlo the chous is trying to keep things going. tomorrow wal-mart, biggest gun retailer in the country, will attend vice president biden's meeting o on gun control. let's take a look at where shares of wal-mart are trading right now. they are down just a fraction, down about a tenth or so of a percent. ty? >> sue, time for a total tyranny addition. michelle cabrera crewso is here.

this is on par with how americans feel about, get this, communism. michelle, should we be alarmed that congress has 10% approval rating? >> not at all. this is a big myth that supposedly congress gets along pt founding fathers of the united states hated each other. and i would like it if majs lators legislated just a little less than they have. >> robert? >> americans like cockroaches better than this american congress. they are very low. but here is the issue. voters don't dislike congress. they dislike voters unlike themselves. there are very polarized district right now. they want to get elected. they are just representing the voters who put them there and those voters across the country disagree wildly about what it do. so when voters say we hate congress, no, it is, with we hate voters who disagree with me. >> i saw the movie "lincoln" just there weekend and at that

time, members of congress hated each other. and the level of rhetoric was so much more then. google, eric schmidt calling for more access in north korea. he is forming the country with bill richardson. schmidt, the latest american excesstive to visit there since kim jong-un took power there. >> i have no problem with schmidt being there. i asked governor richardson if i could go, she report with a pout, i was upset. i don't believe this idea that the state department is all worried they are going to dit rupt some great policy that they are. >> probably just showing kim jong-un how to search for porn. >> he probably already knows. >> how to turn on a light. >> it is a wide-eyed silicon

valley guy going to a very poor corrupt country thinking, wow, technology will change everything. if they just had better broadband and google plus, suddenly this dictator with several people would be better. he said look, we are going to tell them how technology and openness will improve the country and that not where you start. >> we disagree here. michelle, venezuela postponing the inauguration of chavez while he is treated for cancer. >> well, the market is betting he will die because all of the indications are that he is extremely sick. that means more reinvestment, so more production down the road. in the short term leading to a lot of volatility. but in the long-term they think it leads to more oil production. >> they have underinvested? >> yeah.

>> squandered into -- >> 60 billion in revenue for venezuelan, 18 million spent by him and there are allegations of fraud and abuse. >> sharon is tracking the action down at nyse. hay, sharon. >> hi with. we are above the 1650 dollar an ounce level. keep in mind, the average is key resistance level here for both gold and silver. there are firms reducing precious medals forecast for 2013. big winner today, definitely palladium. that is certainly helping the palladium market. we told you it would be a winner in 2013 back in december. >> share on, thank you very much. it has been a very tough start to the year. but we have a five-year bond manager doing quite well. we will get his take on bond in

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hi yield bond funds continue to attract big money. one of the best at sniffing out value of bonds of publicly held

companies. ray kennedy manages the wily high kweeld fund which has beaten 97% of competitors in just the past couple of years. his fund is up 18% since 2008. it is great to have you here, ray, welcome to power lunch. >> good afternoon and happy new year. >> yes, to you too. tell me how you find these valuees. what is your investment and management style? bottom up or top down? >> bottom up, all the way. look, an old firm but rnd for 30 years. specialize in values, small cap, mid cap, top performing funds across the board and we use our research approach to look for value. the core value, who is better to look at them than our analyst that look at the riskiest part of the structure. >> how do corporate fundamentals look like to you right now? there is a worry of default, set

set ra. but you seem to focus on companies that have a lot of asset value and cash on the books. does that, to a certain extent, cushion you? >> absolutely. few things. one is that cash balances are still high. margins are still very high. leverage ratios are still very low. by historical standards. though they are starting to tick up. the default environment is still relatively benign. one of the things that i think gets lost on investors is since 2008 we have refinanced the entire high yield market. there is two ben fritz that from. one is you clearly have a lower interest rate because of lower rates but the second thing we've done is push out maturity. even if there is weakness, which we would not rule out, most companies are pretty well positioned to survive that and they don't have near term mature its. which is always a concern from a high yield investors because, you know, banks can be fickle.

we know that. so from a credit standpoint, things are very strong. >> how much go you take into kri consideration, the macro economy, how much does it play when you're putting together a portfolio. >> macro sets the guard rail of the idea. you will deemphasize home builders or building products. right now for example, we are concerned about europe. from the standpoint of credit, we look at european exposure and incorporate that. you can see we are clearly under weight in mining credits. that's a reflection after tern about mining prices and most high yield miners we have are second-tier players that have higher cost structures. it sets the boundaries by which you look at cred its but we don't necessarily drive the investment strictly off macro.

>> all right, ray kennedy, thank you so much. appreciate you being here with us. ty, over to you. >> six years ago today, steve jobs unveiled one of the most popular technology devices ever made. it is, of course, the iphone. check him out in 2007 at the mac world con section? san francisco. the first iphone went on sale and since then, see if you can get how many. more than 200 million eye phones have been bought worldwide. >> apple stocks, up more than 500%. this is six years. if you have an idea and you would like big money behind it, see how it all comes together. when we bring you the power vich that next. at 1:45, the aflac duck was brought in

with multiple lacerations to the wing and a fractured beak. surgery was successful, but he will be in a cast until it is fully healed, possibly several months. so, if the duck isn't able to work, how will he pay for his living expenses? aflac. like his rent and car payments? aflac. what about gas and groceries? aflac. cell phone? aflac, but i doubt he'll be using his phone for quite a while cause like i said, he has a fractured beak. [ male announcer ] send the aflac duck a get-well card at getwellduck.com.

today asked on yahoo! finance.com, how concerned are you on flying on boeing 787

dream liner after all of the problems they've had this week. 29% say very concerned. 25% say somewhat concerned. but 46% of you say you are not concerned at all. let's see what is coming up on "street signs" with mandy. >> who is jack lew? is he the right man for the secretariry job? plus, on a winning streak, he thinks herbalife is a buy. which puts him against hls. we will bring in our resident hlf watcher mr. herb greenburg. also a facebook phone. really? do we need it? is it a real fistic possibility? we will talk about facebook coming up. >> mandy, thank you very much. a new series here on "power lunch," the power pitch. the goal is to give insight to

ven you're capitol and innovative ideas for start-ups across this great country. >> i'm brian sullivan and this is the power pitch. we are giving innovators the chance to give a word about their start-ups. we give them one minute and they give you five minute of insight. a digital advertiser, latest venture is local response. left advisers respond instantly to consumers social media moments and here is his power pitch. >> hi, everybody. i'm ceo of global response. we think ads suck. we are here it make them suck less. we have socialist signals like twitter, facebook, pin terrorist and instagram to make ads better targeted. so if you tweet, i'm hungry. you meet see a banner ad for

pizza hut. you complain about taxes on base book, you could see a desktop ad for turbo tax. these are real campaignes with agencies we work with everyday. we call this targeting intense base targeting. we are trying to invent a brand new way for ads to literally target the consumer better. we consider this content instead of advertising. where can this go? you're on a bus and tweet, can't wait to watch x factor. the bus that goes by has an x factor ad. we believe this is the future of advertising. bea we are here to bring it to you. thank you. now he is on the right side of your screen and he cannot react physical until we say so. founder of the usa network, author of bold women big ideas, raising capital for women and john carnie cnbc's senior

editor. where is he that sets him apart from his competition? >> there is a lot of competition in this marketplace but there is a great need for advertisers to better target consumers. so i want to know more about how he differentiates himself from his competition. >> i'm worried about the spooky factor here. having advertising that follows you around. that directed at you. people get freaked out about privacy. i think you will have some of that concern here. >> yes. those concerns are out there. doesn't stop people from doing google searches. how much and when does he get paid? >> how big do you have to scale to get this profitable? where are his margins down? who will he sell this company to? i raise that because people should think about that in the beginning. >> let's bring him in. all right. we will ask you a few questions. you get the chance to defend yourself. you heard our concerns. where exactly are you in the

mobile advertising space? how do you make money? >> there are a few other companies that pioneered social targeting. my co-founder founded 86 degrees. the problem with those companies is they are an approximation, which means if your friend clicks on an ad, you might have a higher propensity to see that ad. we think that doesn't work. er with true one to one targeting. if you tweet something or post something to instagram or pinterest, he will have an ad targeted to you specifically. that how we have specific ad targeting network. >> how about privacy? people say, i don't want the big brands following me around everywhere i go. >> we only deal with public information. on facebook, 99% of that is private, not public. on twitter, vast majority is

public. we just deal with public information. >> there's his pitch. he answers our concerns. kay, what do you think? >> i'm in. i will tell you why. i think this is hard nut to crack pip think he is on to something that differentiates himself. he is an experienced entrepreneur with a team of experienced entrepreneurs. i think they know this market. >> and they know how to start up a company. they've done this before. because there is a lost hurdles. jorge posada? >> i'm out. i think there a lot of competition in this area. everybody will be gunning for this exact thing pip don't know what dif rnt rinate them. i'm out. >> i would say i'm in cautiously. only because the space is still evolving. nahall has a very experienced team, as you say, kay. we don't know who and how they will win, john, right? why not go with people who have experience, that seem to be in a niche. all of the target words, right?

mobile, targeted, social, they are all there. i would be in. two ins, one out. nehall, thank you. >> thank you. >> we want to know if you would be in or out on local response. go to powerlunch.cnbc.com. julia boorstin with a big interview. julia? >> joining us to announce news that will impact the internet tech and media companies. here we have that exclusive interview coming up after the break. ♪

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forget about congress. the big story in the nation's capitol today is the state of the union, specifically the union of ligaments and bone in the right knee of robert griffin iii. he is the redskins quarterback. down he went sunday in the playoff game. a person familiar with the situation says repairs were made on the acl, the lateral

collateral ligament and the acl, the crucial ligament. so far, no timetable for rbiii's recovery. sue? >> wishing him well on a speedy recovery that's for sure. >> a our julia boorstin is here with a very special guest tofor us. hi, julia. >> hi. thanks so much for talking to us. all these devices here are connected to wifi. there is a lot of talk about wifi congestion. what is the news you have to address this? >> as you say, everyone loves wifi. it is integral to all consumers. but there is a problem, people get frustrated in crowded place answers wifi is congestion. so we are open willing up more

spectrum, no increase speeds at conferences and places like there, airports, so people can get more streaming video. >> how much band width are you opening up? >> well, we are adding 35% to a key wifi bands. it'll be super fast. it'll effect everyone. people coming to con dprenss, businesses. everyone relies on wifi for brond band and internet. >> people are streaming so much more video than what you first set out 37 your goals for wifi band width, even came years ago, is this enough to keep up with the pace of streaming? >> we can't stop. we have to keep our pedal to the medal. demand for the spectrum is going up and up and up. that's why i was talking about a spectrum crunch. we have clearing and reallocating, unlicensed spectrum.

we have to keep doing this because there is nothing more exciting and beneficial for our economy than what we are seeing around mobile innovation. we have regained global leadership in mobile around 4g and mobile innovation tp to keep that going, we have to push for more spectrum and speed. >> clear wire outbid sprint and the one of the major share shoulders is asking sec so block clear wire sales to sprint. >> i can't comment on specific transactions that are before us or might be before us but we have four years of transactions. we have conditions and here is the bottom line. the u.s. mobile marketplace was on the doorstep of doapoly. that would have been terrible for our economy and innovation economy. what we are seeing now is strengthening companies, all of

them, strengthening competition in the spis and it is helping keep alive this growth in innovation that we see here like ces and it is so important in our economy and 21st century. >> is this a good g thing? >> efficiency transactions cab good thing. transactions that brings us to doapoly and other things are a bad thing. our job is to get right and make sure we have competition that drives private investment in that every gets the spectrum they need for consumers and businesses. >> unfortunately we are out of time. we will see what happens with the very closely watched clear wire deal. thanks so much for joining us. we appreciate it. tyler, back over to you. >> thank you very much. let's get insight from our tech reporter john ford at ces. john, you heard the fcc chief. what is his freeing up of spectrum mean for video streaming players like netflix, amazon and others? >> tyler, it is incredibly

important. think about spectrum as the equivalent of the interstate highway system and its importance to commerce. data needs spectrum in order to flow place to place. streaming is the big loader of networks when it comes to use of spectrum. it is also orlando to do that in the broader wireless wealth of 4g and beyond. clear wire has a bunch of spectrum licenses and so we've got keep our eyes on both the wifi part and broader part. plus if you are a product company, apple, google, amazon, coming out with device webs knowing that spectrum is open, knowing there are areas to run your car down, very important. this is laying technology for ground works products you will see. >> are there any hint there,

john, and his question to julie a pointed question. it was a chairman like/lawyer like response hard for me to figure out what he was saying but maybe can you. >> yeah. i think he was referring not to want two incredibly powerful places in any one piece of the carrier business. in the distribution business. they didn't want a situation where it was just at&t and verizon dominating everyone else. i think the fec likes the fact that sprint is still in the game. how that likes to network, he's not sure. they won't pick favorites but they want spring, i think, so stay alive. >> john, thank you very much from the consumer electronics show? las vegas. >> the dow is up about 60 points but one stock is up 10%. we will tell you what that stock is in a minute. ♪

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